At Rs 867.03 bn, GST receipts short of target for third month in a row

BUDGET 2018 - Goods and services tax (GST) collections for December did not deliver much comfort to the government ahead of the Budget, although these rose after two months of declines.
GST collections at Rs 867.03 billion were less than the target of Rs 910 billion combined for the Centre and states.
The figures, released by the finance ministry on Thursday, highlighted subdued collection in the composition scheme — a flat rate provided to taxpayers who do not seek input tax credit. The government thinks evasion in this scheme will be plugged by the e-way bill, which will be introduced for the inter-state movement of goods on February 1.
December was the third straight month when the GST revenue was below Rs 900 billion. The tax yielded Rs 808.08 billion in November and Rs 833 billion in October. GST receipts have fallen short of target in August, October, November and December.
The target of Rs 910 billion is based upon the Centre’s budget estimates for 2017-18 and presumptive growth figures for states for grant of compensation in the case of a revenue shortfall after switching to the GST.